High valuations leave global stocks vulnerable, Mawer manager says

Peter Lampert is struggling to find undervalued, attractive companies.

Jade Hemeon 26 July, 2018 | 5:00PM

Peter Lampert, Calgary-based co-manager of the $6.8-billion Mawer International Equity, has a three-point wish list when seeking companies for the fund he oversees along with fellow portfolio manager David Ragan.

He requires high-quality businesses, a top-notch management team and a stock price that's less than the company's fair value. But after several years of rising stock prices around the world -- with financial markets heavily stimulated by low interest rates to help them recover from the damaging financial crisis of 2008 -- Lampert is finding the shelves quite bare of undervalued, attractive companies.

"High valuations are a significant theme after strong performance across almost all markets," he says. "It's a global phenomenon and a global challenge. It's harder to find companies trading at a discount."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR261.01 USD-0.22
Tencent Holdings Ltd ADR70.40 USD-1.23

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Jade Hemeon

Jade Hemeon  

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